MML testified Favorable with Amendments on SB 389, which would modify the State’s Transit-Oriented Development (TOD) framework. The bill would automatically designate qualifying TODs as Enterprise Zones and require that development impact fees and excise taxes for residential TOD projects be collected only after construction is complete and a certificate of occupancy is issued.

MML supports transit-oriented development and rail-adjacent housing growth. However, we raised concerns that automatic Enterprise Zone designation would apply a 10-year local property tax credit without local approval, creating significant fiscal implications for municipalities. We also expressed concern that delaying impact fee collection shifts infrastructure financing risk to local governments.

MML has submitted amendments addressing both provisions and remains engaged in discussions with the Administration.

Next steps: SB 389 was heard in Senate Finance and is pending committee action. Contact Angelica Bailey Thupari ([email protected]) with questions.